See why Palmpay, others are set to block PoS operators accounts

• The Corporate Affairs Commission (CAC) will now take action against Point of Sale (PoS) businesses
• The move follows the expiration of the September 5 deadline for all PoS operators to register their businesses
• The Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) are in court contesting the directives

The Corporate Affairs Commission (CAC) has announced that it will begin taking stringent actions, including the potential shutdown of Point of Sale (PoS) businesses, following the expiration of its September 5 registration deadline.

This decision comes in the wake of significant non-compliance with the CAC's registration mandate.

CAC deadline for PoS operators to register ends Photo credit: Luke Dray
Source: Getty Images

In a public notice released on Friday, the CAC noted that businesses that failed to register may be involved in “unwholesome activities.

The CAC's notice reads:

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The Corporate Affairs Commission wishes to remind the general public particularly Fintech operators also known as Point of Sale (POS) operators, that the 60 days deadline given in daily newspaper publications of July 7 2024, for the registration of such businesses expired on September 5, 2024."The Commission notes inadequate compliance with the directive for formalization when viewed from the background of the large number of POS operators in the country. Those that have taken steps to formalize in line with Commissions directive are commended for their positive attitudes."Recalcitrant operators have refused to adhere to the advice for formalization due possibly, to engagements in unwholesome activities or for some reasons best known to them.We are to make it clear that the Commission is working with Law Enforcement Agencies and other relevant stakeholders to deploy comprehensive enforcement and sanction framework that may include not only possible shutdown but other severe legal Consequences.

Palmpay sends message to customers

Palmpay, one of the fintech companies, previously instructed PoS operators in its network to comply with the directives.

According to Umuteme Enakeno, head of marketing and communication at PalmPay, failure to comply will result in accounts being frozen after the deadline.

He said:

“PalmPay fully supports the CAC’s directive. To provide a seamless experience for our customers, we have integrated the registration portal with our business app. "Ensure that all necessary documents and information are provided accurately before submitting their applications."Customers must update their PalmPay Accounts with business details whenever they get the certificate to reflect their new corporate status."We urge all PalmPay Business customers to submit or register their CAC before the deadline. Failure to do so means that the account would be frozen."

POS operators’ accounts to be blocked

In related news, Legit.ng reported that Nigerian banks and fintech companies are preparing to block the accounts of Point of Sale (PoS) operators who have not registered their businesses with the' Corporate Affairs Commission (CAC).

Te memo addressed to all non-individuals involved in agent banking to promptly register their businesses with the CAC in accordance with Section 863 of the Companies and Allied Matters Act (CAMA) 2020.

The directive requires that all PoS terminals—whether operated by agents, merchants, or individuals—must be registered.

Source: Legit.ng